Banks Can Now Manage Customer Crypto, Says U.S. Regulator OCC

In an interpretive letter dated May 7, 2025, the U.S. Office of the Comptroller of the Currency confirmed that national banks and federal savings associations are permitted to execute cryptocurrency purchases and sales on behalf of clients.

The guidance further clarifies that custody and transaction execution may be outsourced to qualified third-party entities, conditional upon full compliance with supervisory expectations and robust internal risk management controls.

This latest clarification from the OCC represents a structural policy shift, formally abandoning the 2021-era requirement for banks to obtain prior authorization before offering cryptocurrency-related services.

The move builds on reforms introduced in March 2025, which removed pre-approval conditions for crypto custody arrangements and transactions involving stablecoins.

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The OCC is not alone in easing its stance. In recent weeks, both the Federal Reserve and the FDIC have followed suit, lifting their respective bans and regulatory barriers that had previously prevented banks from participating in crypto-related activities. 

The U.S. Flips the Script: Banks Can Now Go Full Crypto

The OCC’s updated interpretation authorizes regulated banks to engage more fully in the digital asset space, including both custody solutions and direct execution of client crypto trades.

In practice, this means banks—so long as they meet regulatory risk standards—can now:

• facilitate crypto trading for clients,
• work with sub-custodians,
• and outsource essential operations to third-party vendors.

The decision reflects a larger shift toward bringing crypto into the institutional mainstream in the U.S., giving banks the green light to integrate digital assets into traditional financial infrastructure and ease access for both retail and institutional participants.

Of Interest: Crypto Companies Aim to Become Banks: The Number of Applications is Growing

By enabling broader banking participation, this approach may speed up the development of crypto infrastructure—from custody and settlement layers to trading venues and payment rails—positioning banks as credible alternatives to centralized platforms. It also creates strategic openings for regulated service providers to engage in sub-custodial partnerships and deliver KYC-as-a-service.

Given the softer crypto stance of the current administration, the OCC’s announcement could serve as a catalyst—reviving institutional interest in Web3 and strengthening the confidence of traditional finance in blockchain markets.

Crypto Sector Applauds OCC Ruling as Banks Eye a Return

The crypto industry has broadly welcomed the OCC’s revised guidance, viewing it as a meaningful shift in regulatory posture.

Catherine Kirkpatrick-Boss, counsel at StarkWare, described the move as a milestone—signaling a broader alignment between digital asset innovation and traditional finance.

In her view, this clarity reduces existential regulatory risk and allows banks to reengage with digital assets without the looming threat of sanctions.

Coinbase’s Chief Policy Officer Faryar Shirzad welcomed the OCC’s move, highlighting the critical role that regulatory certainty plays in fostering responsible innovation and oversight.

This decision fits squarely within the pro-crypto pivot seen under the Trump administration, which resumed in January 2025. Since then, Washington has taken a more constructive stance on digital assets.

By opening the door to crypto-banking integration, the OCC is sending a clear message: the future of finance includes blockchain, and it belongs inside the regulatory perimeter.